The Sisyphus’s Rock of Prosperity and Disparity in the Global Economy: Giovanni Arrighi and Apple Inc’s Tax Avoidance Strategies from Obama to Trump

Abstract

The global value chain (GVC) perspective assumes that business firms’ occupation of high value-added nodes in the global production network can promote their countries’ socio-economic development. However, I argue that society-wide benefits that may follow from firms’ profit-maximizing activities are often ephemeral. Over time the middle class can shrink, and economic inequality can increase even when firms continue to move up to higher value-added niches and garner huge profit. I illustrate this disjunction between business activities and societal development with Apple’s strategies of tax avoidance and reduction from the Obama to the Trump administration. I then draw on the theoretical framework that Giovanni Arrighi sets out in The Long Twentieth Century and ideas from The Myth of Sisyphus by Albert Camus to analyze the Apple case. As my analysis makes clear, the flawed assumption of the GVC perspective reveals its practitioners’ failure to recognize that within global capitalism, permanent and sustained societal affluence is unlikely, and what exists instead is a constant alternation between prosperity and disparity.